May 8, 2019 / 1:39 PM / 6 months ago

CANADA FX DEBT-Loonie trades in narrow range as housing starts surge

    * Canadian dollar rises 0.1% against the greenback
    * Canadian housing starts jump to 235,460 units in April
    * Price of U.S. oil increases 0.2%
    * Canada's 10-year yield hits a five-week low at 1.654%

    TORONTO, May 8 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday but held to a narrow
range, as oil prices increased  and domestic housing starts rose
sharply in April.
    Canadian housing starts surged nearly 23 percent from March
to 235,460 units as groundbreaking increased on multiple unit
and single detached urban homes, data from the national housing
agency showed.             
    The data could support the Bank of Canada's view that the
housing market will recover after slowing since the start of
2018.
    The price of oil, one of Canada's major exports, rose as
persistent supply worries offset concerns about a deepening
trade row between the United States and China. U.S. crude oil
futures        were up 0.2% at $61.52 a barrel.             
    At 9:14 a.m. (1314 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3465 to the greenback, or 74.27 U.S.
cents. The currency, which has declined nearly 3% since
February, traded in a range of 1.3447 to 1.3486.
    Canada's trade report for March is due on Thursday, while
the April jobs report is due on Friday.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 2.5 Canadian cents to yield 1.567% and the 10-year
            climbed 15 Canadian cents to yield 1.669%.
    The 10-year yield touched its lowest since April 2 at
1.654%.    

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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